In this Cardano update, there is some bad news and some good news. The bad news is that the Vasil hardfork is delayed once more. We’ll go over that, but first read this:
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Cardano Vasil delay
So the Vasil hardfork has a few more weeks of testing, should have gone out in June, got delayed. I thought it would be potentially mid-August. They said it would be delayed until the end of July. You always have to give it a few weeks after that because these things are always delayed, but a few more weeks from where we are before we go to the actual Vasil hardfork.
This is a really big upgrade for Cardano. It’s not just a normal upgrade with a few small changes. This is a really major set of changes right here because we have a lot of applications that want to launch right after this upgrade. There are obviously a lot of teething problems and potential issues that you just have to find during this process. It’s not a big deal for me, but it’s obviously frustrating for investors.
A Vasil, an upgrade designed to increase Cardano’s scaling capabilities, has been scheduled for a June release followed by its introduction onto the mainnet. A hardfork is a backwards-incompatible change to the software used to validate and produce new blocks.
The important thing here is that all of the applications that were built previously will still be available to be used. Sunday Swap came out and confirmed this, so just because an application doesn’t update or upgrade to the new hardfork, they will still be able to be used.
There are some differences with the hardfork in terms of how applications can be used, so you’ve got a load of lending protocols. Ardana, Ada and a bunch of other liquid funds that really want to launch straight away. So they obviously have to make sure everything is right in the meantime, but there are a few more weeks, I would say, maybe the end of August, before it goes through, so not a massive deal.
Next up, though, is Ledger adding support for Cardano assets. This is great, because a hundred native Cardano assets are now available on Ledger devices.
So this is a hardware wallet and it’s just far more secure than having it anywhere else, even on your phone or something like that. So Ledger hardware wallets now integrate perfectly with Cardano, so they have native support. Some blockchains don’t, but they have native support with Lledger and Cardano now, meaning that you can put your ADA on there and it’s about as safe as it can be, but you can also interact with the blockchain through your ROI.
Ledger has started support for a hundred assets initially, and I’m sure there’ll be way more coming as well. So obviously, Cardano is the native asset, but there are other native assets as well on the Cardano blockchain. This takes time, but you can see a hundred native Cardano tokens just made their way to your Ledger Live app. There are many more tokens, but for now we decided to support these 100 tokens first .
Meanwhile, the new listing comes just a month after Ledger added full support for Cardano, allowing users to send, receive, and manage ads directly from Ledger Live. So that is definitely good news if you are a Ledger user now.
Admittedly, most tokens on Cardano right now are like jokes, like stripper coins and all that nonsense, which is obviously funny and something that happens, but there are some important ones as well. For example, anetaBTC, which I think is important.
As we know, Ethereum has wrapped Bitcoin, where, obviously you can’t use Bitcoin for DeFi on Bitcoin but you want to keep exposure to Bitcoin and use it on Ethereum DeFi, which is obviously a fantastic use case. You can put it in liquidity pools and maybe earn some yields from adding liquidity, which is obviously a massive use case of Ethereum DeFi on curve finance and other LPs like that. This can happen on Cardano as well, and it’s going to happen in the future, but obviously not there yet.
But what’s important is that we have Cardano’s version of wrapped Bitcoin. You want Bitcoin, so you can get exposure to Bitcoin. You also want to maybe put it in liquidity pools and DEXes like wing riders or something like that. So it’s critical that if you’re a Cardano user, you have access to all of this. So you have a wrapped version of Bitcoin on the Cardano blockchain that can be very easily used with a hardware wallet. It’s literally the ideal solution.
And so, as you can see, slowly coming online is just support for Cardano and all of the tokens and the DeFi. That’s going to be happening, so yeah, really exciting in that respect.
Talking about Cardano DeFi, there are a few things that I would like to happen before I really start using the DeFi myself. I just don’t think it’s there yet for me personally in my use cases. I like to use stable coins and provide liquidity for those on a few different DEXes. You can get some really good returns on those. dollar got nothing against you know, having a US dollar and earning some yields on that is still not really possible on Cardanoto any great extent.
The Minswap is now growing its TVL or its share of TVO on the system. Minswap and WingRiders are the number one and two DEXes so far. They have a great design. They’re great at what they do.
As you can see here, if we just type in for stable coins, there’s only one stable coin pair right now on Minswap, which is ADA, and then madUSDC. So I’ll get on to what that is, but as you can see, there’s just no trading volume for this. I think it’s really holding back these DEXes because, when you look at other DEXes like Uniswap and PancakeSwap, they have the biggest pair. It is always like a USDC or a USDC, a stablecoin pair. So that’s where a lot of liquidity is and that’s what a lot of people want to do when they add liquidity. When you want to earn some yield from these, you want a stablecoin pair because you don’t want an impermanent loss, and you know that adding liquidity to very small tokens is going to wreck you in permanent loss.
It’s something I want to see and maybe after the hardfork, I know there’s going to be Jed and there’s going to be other stable coins, so it’s interesting to see kind of how that plays out. That’s just something we have to wait for now.
As you can see with WingRiders, they’ve definitely done more with the USD than the stable queen pairs. You actually have a dual stable coin pair here, which is really great. With dual stable coins, if you want to add liquidity here on the right-hand side, you’re not going to suffer any impermanent loss, or you shouldn’t anyway, because you have US dollar tether and US dollar coin, both one dollar . So there’s no impermanent loss here. So this is a great way to actually earn a yield on dollars. You’re not really taking risk aside from smart contract risk, platform risk, and obviously the risk of one of them losing their peg, which I personally think is pretty low, but again, you can see the volume, it’s just nothing right.
Unfortunately, the volume isn’t there on those US dollar pairs for me to add liquidity, but that’s going to be coming if we’re looking at other volume. WingRiders have done a million dollars in trade volume in the last 24 hours, which is fantastic when compared to other ecosystems. Yes, a million dollars for WingRiders.
I think Minswap is about over a million dollars because it actually trades in ADA instead of dollars compared to something like PancakeSwap and Uniswap. The Pancake Swap over the last 24 hours did 270 million in trading volume and the Uniswap on Ethereum, so that’s the Ethereum mainnet did almost a billion dollars in trading volume. They’re doing more volume on these other networks as well.
That should give you an idea of where volume and trade are on Cardano in comparison to those other ecosystems. Cardano is number eight. It’s valued at $17 billion, fully diluted at around $20 billion. You know, that’s just half of Binance and a tenth of Ethereum, but those two ecosystems have far more trade going on top of them.
So just to kind of be aware that Cardano is, you know, still in the early stages. Therefore, as an investment, you just have to kind of keep that in mind. It is also valued very highly at 20 billion considering the amount of current activity that’s actually happening, but obviously you invest for the future and not for the now.
The Vasil hardfork is going to have lending protocols, which I think is going to increase the amount of kind of trade and volume on there, which, through lending, also means that DEXes have more use cases as well. Obviously, that’s yet to build up. The other two have gone through that in the last cycle, so it will be interesting to see how Cardano comes through.
[This article is a transcription of a video made by Money ZG]
[Original video: https://youtu.be/Wu0lbB3SkpI]